Globalisation Productivity and Technology Research Paper 2006 / 34 Financial Constraints , Global Engagement , and Firm Survival in the UK : Evidence from Micro Data
نویسندگان
چکیده
Financial constraints have been found to play an important role on various aspects of firm behavior. Yet, their effects on firm survival have been largely neglected. We use a panel of 9420 newly established UK firms over the period 1997-2002 to study the effects of financial variables on firms’ failure probabilities, differentiating firms into globally engaged and purely domestic. Estimating a wide range of specifications, we find that lower collateral and higher leverage result in higher failure probabilities only for purely domestic firms. This can be seen as evidence that global engagement shields firms from financial constraints. JEL Classification: D21; F23; G33; F14
منابع مشابه
Financial Constraints, Global Engagement, and Firm Survival in the UK: Evidence from Micro Data
Financial constraints have been found to play an important role on various aspects of firm behavior. Yet, their effects on firm survival have been largely neglected. We use a panel of 61496 UK firms over the period 19972002 to study the effects of financial variables on firms’ failure probabilities, differentiating firms into globally engaged and purely domestic. Estimating a wide range of spec...
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